With the swearing-in of 12 Sindh ministers on Friday, Dr Arbab Ghulam Rahim's team is in place. All of them were in the cabinet of Mr Ali Mohammad Mahar, who resigned earlier this month after a sudden deterioration in the law and order situation in Karachi last month. One wishes there were some new faces, so one could expect a change in policies for the better.
Six of the new ministers belong to the Muttahida Qaumi Movement, five to the PML, and one to the PPP-Patriot. This way, the cabinet is a balanced one and has elected representatives from both urban and rural Sindh. This is the key point for all to understand, for a Sindh government which is aware of the people's problems in rural as well as urban areas alone can deliver.
Sindh's economic problems have been compounded by the province's ethnic mix. The violence that has become endemic here stems basically from the failure to resolve Sindh's burgeoning economic problems. The trek from villages to the cities, especially Karachi, has put a severe strain on such utilities as water, power, sanitation and transport. Half of Karachi's population - a city of over 10 million - lives in slums, while crime and acts of terrorism have added to a sense of acute insecurity among the people.
These problems cannot be solved overnight, nor is there a quick-fix solution. But a beginning has to be made if the new cabinet is address these gargantuan problems with any hope of success. Its first and foremost task should be to create a positive image for itself - that of a well-knit team. This is essential, for every now and then we hear of "fissures" in the cabinet, or some faction threatening to leave.
The induction of 12 more ministers raises their strength to 14. One hopes there will be no additions to this number. A small team can do a better job than a large one whose performance is hampered by political compromises and group interests. This holds true as much for the other three provinces as for the federal government.
Relief for pensioners
Relief given to retired persons and senior citizens in the budget is a welcome step. The raising of pensions from between eight to 16 per cent on an ad-hoc basis and the setting up of a committee to give recommendations for further relief to pensioners within six months are encouraging. As are the introduction of a special savings scheme for pensioners and widows. The government hopes to raise Rs. 36 billion from this scheme. Equally laudable is the proposal to give breathing space to certain categories of borrowers from the House Building Finance Corporation.
It is estimated that 38,000 borrowers, mostly retired persons, widows and low-income earners will benefit from the decision to freeze the amount owed to the HBFC as of July 2004 and allow for repayment in equal instalments. All these steps seek to provide a degree of relief to some disadvantaged sections of society at a time when inflation is biting and the prices of wheat, fuel and power have risen.
At the same time, the decision to transform the National Savings Centres into an autonomous corporation run on commercial lines can be seen as a measure that will help pensioners and widows in the longer term. By allowing the proposed company to diversify its business and invest in mutual funds, the government will be opening up a new avenue for investment that will ensure returns that are higher than what is being offered now in government savings schemes.
If handled properly, the new savings corporation will be able to replace the National Savings Certificates as a secure and reasonably paying mode of investment. One hopes that through this corporation, people are offered an avenue of investment that gives them a reasonable return on their investment. If this proves a success, the anxiety and uncertainty that pensioners and widows have faced in recent years because of the falling rates of return on their investment will finally come to an end.